How to change background color to transparent in GIMP

This is a small How-To on changing the background color of a image to transparent using open source GIMP Image editing application. The idea is to add alpha channel, select by color and cut it. Let me put it in detail here.

Step-1: Open the Image in GIMP.

Original image opened (Step-1)

Step-2: Navigate Layer -> Transparency -> Add Alpha Channel.

Step-3: Navigate Select -> By Color

After adding alpha channel and selecting by color (Step-2 and 3)

Step-4: Mouse click on background color of image

Step-5: Navigate Edit -> Cut.

After cutting the selected background (Step-4 and 5)

Step-6: Save it in format of your choice (Warning: JPEG does not support transparency, so opted for PNG format).